When faced withuncertainty there is aneed to exerciseprudence. Which of thefollowing would beexcessive use ofprudence? A. future repairs to non currentassets are accounted for at thepoint the asset is acquiredB. depreciation is accounted forestimating the useful economiclife of non current assetsC. non recoverability of tradereceivables is accounted forbased on past experienceD. accrued expenses areaccounted for though the relatedinvoices are yet to be received.

PRUDENCE IS USALLY SEEN AS A VIRTUE . HOWEVER , IT CAN BE EXCESSIVE IF IT HAS AN UNREASONABLE IMPACT…

Answered: When faced with uncertainty there is a…

When faced with uncertainty there is a need to exercise prudence. Which of the following would be excessive use of prudence?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

When faced with
uncertainty there is a
need to exercise
prudence. Which of the
following would be
excessive use of
prudence?

A. future repairs to non current
assets are accounted for at the
point the asset is acquired
B. depreciation is accounted for
estimating the useful economic
life of non current assets
C. non recoverability of trade
receivables is accounted for
based on past experience
D. accrued expenses are
accounted for though the related
invoices are yet to be received.

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